In a move that could change the dynamics in the video advertising space, Asia Pacific’s leading digital media technology platform Komli Media and cross-platform interactive video advertising company Jivox have entered into a strategic partnership. The tie-up will see Komli as the exclusive licensee of the interactive video ad platform in the APAC region. Jivox’s success in India and Komli Media’s reach in the APAC region will allow both firms to work the partnership to their advantage.
Naren Nachiappan, Managing Director, Jivox India, said, “Jivox is a technology platform which delivers interactive video ads for agencies and clients. We chose to partner with Komli Media as they already have a strong presence in the APAC region. We want to extend our footprint to Australia, South-east Asia, and the Middle East, and use this platform to build a video advertising network across the APAC region. Our aim is to see the Jivox platform become the most widely adopted platform worldwide.”
The partnership allows Komli Media to exclusively use the Jivox platform for running online interactive video ads (pre-roll, mid-roll, post-roll, expanding innovations, video banners, and mobile video) for its advertisers and agency partners across all platforms including online, mobile, and all tablet devices. Prashant Mehta, CEO, Komli Media, elaborated on how the alliance would help them leverage their position in the region and offer several advantages to their clients.
He further said, “Our growth has been accelerating in the market and many of our clients come to us and say that we handle mobile, social media, and display advertising, so why not combine video advertising and handle all the platforms for them? Instead of having too many small players addressing different needs, clients want one big player who can handle all their advertising requirements across the board. If they go to one player in the video ad space, one in the mobile ad space, and a third in the display ad space, each of them will highlight their own space as the most effective. However, since ours will be a one-stop destination for our clients, we will be able to advise them as to which of the different mediums works best for them and redistribute their spends from one medium to another.”
The tie-up allows Komli Media to go to bring video, mobile, and display ads under one management making it easier for clients who can approach one company instead of going to different companies for their different needs.
Prashant added, “We’ve now become one of the largest media companies in India and we have done that by delivering service with value to our customers. Some of our clients in India are Mahindra&Mahindra, Airtel, leading e-commerce and online travel players. When we decided to enter the video ads space, we enquired from all our biggest customers and found that many of them mentioned Jivox as the best video platform. The alliance offers us a massive opportunity due to extensive broadband and mobile penetration. With this deal, we will be the leader across the APAC region.” As part of this partnership, Komli Media acquires related assets from Jivox, including existing publisher and customer relationships in India, while Jivox will also support Komli Media as a platform licensee and a strategic partner.
In India, the video advertising business falls between Rs 100 crore and Rs 125 crore. It is growing by 50-60 per cent, almost double the market growth. In Australia, this segment generates around $65-75 million and within the next 3-4 years, it is expected to garner close to $300 million. In South-east Asia, India, and Australia, the focus of the strategic partnership in the APAC region, business generated is over $100 million and growing at a rate of 50-60%.
Naren remarked, “The video advertising market in the APAC region is close to $3 billion. This region is growing much faster than North America and Europe. Our highest market penetration in the video ads category is in India. Australia is a fairly big market which we will now focus on, and we are looking to introduce our technology over there. Komli has been extremely successful in Australia and we expect that growth should be rapid there.”
Jivox handles cross-platform ads for some big names such as Samsung, Nokia, and Microsoft. One of their biggest success stories has been Microsoft for whom they have done approximately 15 campaigns in the past couple of years for all their products. “One of our campaigns for Microsoft was to publicise Internet Explorer 8 (IE8). People who watched the ad that we created could directly download the browser from the ad. The interaction rate was over 1.5%. We also created successful video campaigns for the new Samsung tablet, which ran on mobiles as well as on the web, the Nokia X7, and for Hero’s rebranding campaign, on the day of the big launch, an interactive ad ran on virtually every big internet site in India, numbering over a 100.” The company has a detailed set of analytics on the effectiveness of the campaign. While the success of some campaigns is measured based on how many users interact with the ad, some depend on how many users put it up on their social media sites, etc.
As to how the video ads are faring on the mobile and tablet platforms, it is specific to the type of creative and the capabilities of the device. Commenting on the effectiveness of using a mobile/digital platform for advertising, Naren explains, “Online video advertising is a very good alternative to TV advertising. It has the same impact as advertising on TV at a lower cost. Last year, it was the turning point for us in India. Cricket fans could watch the IPL live streaming online. That got a lot of people on the web. The bandwidth is also getting better. As we go forward, the number of impressions on smart mobile devices is going to exceed the number of impressions on the web. Time spent on mobile devices is increasing will exceed time spent on laptops and desktops. Mobiles will be part of every significant campaign in the future. Around 80% of the phones in the market have a small display but the other 20% fall in the smartphones category with a 4.3 inch resolution screen that is comparable to watching ads on a laptop. Smartphones are an alternative to the laptop and the number of devices is going to increase, data rates are becoming cheaper and with 3G high-quality experience, they are driving a scenario that is just as easy and effective.”
Talking about their future plans, Naren said, “Presently, we support video advertising for iPhones, iPads, Android devices and we will be looking to increase technology for mobile phones. We will continue to expand the number of devices which can use our technology, add new ad units, and make more investments in the analytics area. Our dominant platforms for the near term will be the smartphone platforms as they are the high-growth platforms in the future.”
As for their media mix, Komli Media does a major portion of their advertising online, and also uses print media – mainly trade media, and BTL activities centered around different conferences and other forums which afford a one-to-one interaction with their clients. They also reach their clients through social media and by organizing various summits and meets every quarter with leading CMOs and industry leaders in each of the markets they operate in.